PSP Projects Limited: Building Momentum in Q2 FY26

PSP Projects Limited, a prominent name in India's construction sector, has reported a robust performance for the second quarter of Fiscal Year 2026 (Q2 FY26). The company achieved a revenue from operations of ₹694 crore, marking a significant 20% year-on-year (YoY) growth and an impressive 35% quarter-on-quarter (QoQ) increase. For the first half of FY26, the revenue stood at ₹1,206 crore, reflecting a modest 1.38% YoY increase. This improved performance is primarily attributed to enhanced project execution, driven by better workfront and labor availability, especially after the monsoon season. A key development in Q2 FY26 was the commencement of mobilization for a majority of Adani Group projects, signaling sustained momentum for the company.

PSP Projects continues to diversify its project portfolio across various segments and geographies. The company's outstanding order book as of September 30, 2025, reached ₹9,883 crore, demonstrating a strong 51% YoY growth. This order book is strategically diversified, with Institutional projects accounting for 43%, Government projects 29%, Industrial projects 26%, and Residential projects 2%. Geographically, PSP Projects maintains a strong presence across Gujarat, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra, and New Delhi, ensuring a broad operational base. The strategic partnership with Adani Infra, which now holds a 34.41% stake in PSP Projects, is a cornerstone of its future growth, promising a substantial influx of orders from Adani Group's planned USD 100 billion capital expenditure pipeline.

Beyond financial metrics, PSP Projects showcased its engineering prowess by setting a world record in Q2 FY26. The company completed a continuous concrete pour of 24,000 cubic meters in just 54 hours for the foundation of the 504-feet Vishv Umiya Dham Temple in Ahmedabad. This achievement, recognized by the Golden Book of World Records, highlights exceptional efficiency and coordination, generating ₹37 crore in revenue for work that would typically take three months. This milestone underscores the company's capability to deliver high-value infrastructure projects ahead of schedule.

PSP Projects is also strategically investing in its Precast Facility in Gujarat, aiming to enhance capabilities and explore newer technologies. This state-of-the-art manufacturing plant leverages Offsite Modular Construction Technology to ensure seamless quality, speed in delivery, and larger volumes in a controlled environment. The company is currently undergoing capacity addition in this facility to meet the growing demand from both civil and infrastructure sectors, with several Adani Group projects slated to utilize precast elements starting from December 2025.

While the quarter demonstrated strong operational recovery, the company noted an increase in its working capital cycle to 102 days, primarily due to higher debtor days. This is attributed to the majority of sales being booked towards the end of September, with receivables still in process. Management expects this to stabilize in Q3 FY26 as advances from the Adani Group are realized. Project delays in certain areas, such as Mumbai's Dharavi projects and some government initiatives, were acknowledged, mainly due to external factors like land acquisition and monsoon impact. Despite these challenges, PSP Projects maintains a comfortable leverage position with a debt-equity ratio of 0.29 times, providing ample room for future debt financing. The company's strategic focus on executing projects with consistent quality and leveraging its Adani partnership positions it for sustained growth and enhanced profitability in the coming quarters.